How Do You Negotiate Salary For Remote Position?
People often complain about how difficult it is to find remote jobs. Many check for websites and job listings that state that the position is remote. But when you find a position and have an interview, the question often is: “How Do You Negotiate Salary For Remote Position?”
There are no magic spells. But here are some pointers on how to get the pay you deserve while working and negotiating from home.
See also the article WHAT ARE BEST REMOTE JOBS?
Schmooze or Lose – Connect During Your Interview
When people negotiate electronically versus in person, they act, think, and feel different.
When you shake hands during a face-to-face negotiation, the bonding hormone oxytocin is released. This hormone is helping people to relax and trust each other. But if you’re negotiating the salary with a new boss, you won’t be able to meet in person, if your meetings are held remotely. Therefore, you must find a way to gain people’s trust.
Smiling and having good eye contact with the other person by gazing directly into the camera is one method for putting people at ease. It’s like a “virtual handshake”. So make it a habit not to look at the picture of the other person but directly into the camera.
This might sound trivial, but small details may add up quickly when it comes to complex negotiations for better pay and benefits.
Local Talent vs. Relocation – Know Your Value
The salary is heavily affected by whether the company is able to recruit a remote applicant, or whether a local talent will be given priority. Local candidates are given priority when hiring people with common abilities and skills. Usually, they are hired to fill entry-level or middle-level vacancies.
But companies are willing to go above and beyond to hire candidates with unique abilities and skills that can impact the company’s growth. At that point, the priority is to recruit the right kind of person for the job and not to compromise in any way. Compensation and benefits, as well as relocation costs, would never be a problem for such candidates. It costs 3-5 times as much to hire an outstation applicant to hire from a local talent pool.
Thus it’s clear that it’s important to have the required skills and experience to demand reasonable pay. But it’s also important to have the right attitude.
A specialist in his profession with a negative attitude is more dangerous than a mediocre performer with a positive attitude. Skills and success may be taught and coached, but habits are inborn.
In other words: Companies are willing to give a higher salary if they see that you will give have value for the company.
These factors will impact your ability to gain a higher salary:
- your overall demeanor
- your willingness and ability to learn
- your self confidence
- your ability ability to work in a team
- you are being self-disciplined
- you are able to motivate yourself
- you are highly motivated
- your potential to grow
- your willingness to accept and face challenges
- your ability to see the big picture
- your willingness to grow with a company rather than using the given opportunity and role as a stepping-stone to a higher position elsewhere
You may have read somewhere that “compensation is not an obstacle for the right kind of candidate.” This is the idea of the “right kind of candidate,” someone who possesses the necessary credentials, experience, and attitude. Candidates with the requisite qualifications, experience, knowledge, and the right attitude are compensated more than others.
While there is no direct link, the name of an institute or university impacts hiring decisions and potential compensation packages. Different institutes have different approaches to training, coaching, and growth, so candidates from certain institutes are assumed to be better trained and qualified in certain soft skills that affect an individual’s efficiency and productivity in the workplace than those from many other institutes.
Shift Your mindset and approach
In an impersonal environment, such as a video call, it’s much easier for a hiring manager to say “no.” Furthermore, interviews per video conference are more task-oriented. And thus they are prone to confusion and misinterpretation, eroding confidence.
According to experts, many novice negotiators become uncomfortable when presented with these challenges. This can cause some to make rookie errors like being unnecessarily hostile.
The use of force is rarely successful. So don’t act like you want to win an argument when you negotiate your salary. Change your attitude and structure to gain the upper hand. it’s not about winning; it’s about finding mutually advantageous solutions for both sides.
You’re looking for a raise, but your boss may have some requests of their own. Therefore, build rapport by describing your salary request in a way that respects and satisfies the employer’s needs and investment.
If you’re stuck, don’t ask a closed-ended question like “Can we do a signing bonus instead?” You will profit from brainstorming and open-ended questions by asking, “What else can we do to achieve our objectives?”
Of course, in every negotiation, planning is crucial. So know ahead of time, what monetary and non-monetary incentives are most valuable to you, as well as what things you’re willing to exchange.
The Interview – Show Off Or Not?
So, you have the required talent, abilities, experience, and knowledge, but how can employers or interviewers know?
Actually, their knowledge about you only can be based on your interview results. So the interview is your only chance to communicate and show off your knowledge, talents, and abilities. If you fail to do so – or even worse, if your resume’s quality does not fit the content of your interview conversation – forget about negotiating a decent pay package for yourself. You will not even be considered for a position.
Your manner and demeanor during the interview are also important factors to consider. Arrogance has the potential to be lethal and therefore has no place in an interview.
Companies are increasingly concentrating on optimization, restructuring, and improvement, as the business world changes constantly. So they put a greater emphasis on any special talent within a sector rather than the domain itself.
Human Resources Management, for example, is a wide and varied area, and simply stating that you have 7+ years of experience in HR is insufficient. The same is true for finance, company growth, marketing, and a number of other fields. They are all in the same boat.
Another example is software engineering. There are also hundreds of software languages, each with its version that is constantly modified.
Or working as an executive for FIVE years or more does not qualify anyone for a management position.
Simply working for a certain number of years at a certain level does not automatically qualify anyone for a senior position. If they lack the required characteristics they will not get the job – not to speak a higher salary.
So during the interview make clear what specifically your is your selling point. What exactly and specifically can you do better than other candidates.
See also the article HOW DO YOU ANSWER WHY DO YOU WANT TO WORK REMOTELY?
Relevant industry experience
Having expertise in a domain’s requisite ability is not enough; one must also have relevant industry experience. A company will look into that to find out a candidate’s willingness to accept and adapt to the company culture.
While a company’s specific culture within a sector can vary, the broad challenges and requirements of a culture within a country or a measurable geographical distance remain the same.
A Content Writer in the Gaming Industry, for example, would have different skill sets than one in the BPO or IT industries. A Business Analyst in the Research Industry is not the same as a Business Analyst in the Entertainment Industry.
Last Drawn Salary – Why Does It Matter?
A company will not employ a candidate with relatively low pay when the company budget for that job is exponentially high. Just like a candidate will not enter a new company with pay less than his last drawn salary.
If you meet the companies requirements, you’re usually eligible for a 10-30% increase in salary compared to your last drawn salary. Typically, if your last salary was poor and you were given a raise, they think you might threaten the company’s inequity.
Watch Your Language – Avoid Killer Phrases
If social cues are sparse, the other party is more likely to parse your words and how you say them.
Avoid ultimatums or rights-based phrases. Avoid phrases that express a sense of entitlement, such as “I believe I deserve to be paid more”. Such phrases do not come across as trustworthy and professional – but rather egotistical.
To express the reason for your salary criteria, use plural pronouns like “we,” “our,” and “us” rather than singular pronouns like “I,” “me,” and “myself.”
Maximize Your Leverage
Though negotiating remotely can be challenging and stressful, don’t underestimate your power. “You’ll never have more power to negotiate” if an employer makes an offer and you don’t take it.
Accepting the first offer is a bad idea, as is dividing the difference. Prepare your answer and be prepared to clarify what you should do based on your previous achievements.
Finally, a company with little or no remote workers can refuse to hire someone who requests to work remotely before their first day on the job. Omit the contact structure, helping a remote worker may be a major ongoing investment. Even one remote person may cause a huge disruption in the company if everything is optimized around physical in-person meetings in conference rooms.
Candidates seeking higher-paying positions must improve their attitude as well as their skills. They must avoid being sentimental or emotional, as well as acting arrogantly. Companies will never be held accountable for your personal or family obligations, and you will never be compensated for them.
So never use them as your reason to request remote work or getting a higher salary. No one performs any charitable work without receiving some profit or gain, whether direct or indirect.
6 Salary Negotiating Tips for Remote Jobs
1. Make the return on investment clear
Preparing for your remote work interview can be difficult, which is why outlining your return on investment for each past employer will go a long way in getting the salary you want.
Employers are struggling to maintain competitive salaries in the face of economic downturns. Wage stagnation has led to a general increase in the cost of living. To offset this, employers are looking for new ways to cut corners and save money.
So make clear why your higher salary will add additional benefit to the company. Or in other words – what the company will get in return for the investment in you. It needs to be crystal clear that investing in you will earn the company or will save the company money.
2. Find out why a company is looking to hire remotely
If the company is actively recruiting remote workers, they are doing so for at least one of these reasons:
- They want people to be able to work from anywhere they are productive.
- They want access to a global talent pool.
- They are trying to save money by not having an office
All of those reasons are valid, but if you want to have an easier time negotiating with companies, you might want to focus on the companies driven by one or both of the first two.
On the other hand, if the company is trying to reduce costs you might have a harder time convincing them that they should pay you more.
But if the company is looking to fill a position and want to establish a team where there are too few talented people, you have a higher chance to keep asking for a higher salary.
Asking an employer why they’re specifically hiring for your region might help you negotiate a better deal.
3. Go from local to global
As you get more acquainted with the job, ask about the geographical locations of the teams that you’ll be working with and at what level of cultural knowledge you will need to acquire.
If your job is more global in nature, it can warrant more of a salary or other additional compensation, regardless of where you live.
Creating value and working productively remotely with a multicultural team and/or multi-geographic team is a special skill set in its own right. Leverage this while you learn more about the job.
4. Highlight your skills
When it comes to salary, don’t expect companies to offer higher pay grades because of your lifestyle choice or of what city you want to live in.
Companies do not pay you a higher salary just because of your life choices. So if your choice is to live in an expensive area, or you are having children, a mortgage to pay off, don’t include that in your salary negotiation. Actually mentioning these factors as an “excuse” for asking for a higher salary will make you look desperate and actually selfish and unprofessional.
Instead, keep the conversation focused on your skills and past accomplishments. Your compensation should be based on the skills that you bring to the team and on your results. And nothing else!
5. Aside from money, consider other aspects as well.
Keep in mind that when you have a higher salary request, there may be less room for negotiation on the other benefits. In order to get what you want, ask about special benefits such as healthcare, or childcare reimbursements.
Remember to negotiate based on your research and not just what comes to your mind during the interview.
Prepare well and have those additional benefits clear in mind and evaluate their worth before the interview.
Some benefits you might want to consider are:
- Home office set-up costs
- Childcare costs
- Internet and co-working space costs
- Work-related travel costs
- Professional development budget (additional training and courses)
- Health Insurance (including dental, etc…)
- Retirement savings
- Company shares
- Vacation days, PTO
- Additional benefits such as a gym membership
6. Check paid salaries where your company is located.
This is a classic negotiation starter and it’s still relevant when negotiating salary for remote positions
When considering a wage, try to think about what other companies that have headquarters or offices in the same places as your potential employer are paying their employees for a similar role.
For example, if an employer is searching for someone with IT skills, how much would it cost them to hire one locally?
Good recourses to check salaries are Salary.com, Glassdoor, or PayScale.
If the company is remote-based, you can check on their direct competitors to see what their employees are being paid and find out where they are located.
Once you have the number, use this as a basis for your negotiation.
But don’t simply state: “Salary.com said this position should pay 70k”. The company knows already exactly what this position is worth, but in the end, they will pay you what they think YOU will be worth.
But knowing what others are being paid puts you in a better position to negotiate with confidence, knowing that the salary you are asking for is not too low and also not too high.
So in conclusion, How Do You Negotiate Salary For Remote Position?
Well, be prepared to highlight your specific value for the company, have good eye contact during the interview, know your worth and avoid phrases that disrupt your credibility.
Remote jobs will increase greatly in the next years and you can get a head start right now. Our wish is, that these tips will help you to also get the salary you deserve.